Fine Arts Insurance Scope Inthe East, Final

Fine Arts Insurance -Scope in the East

(A REPORT)

On

MBA PROJECT

AT

Iffco-Tokio General Insurance Company Ltd

Kolkata,

Under the guidance of

Mr. Siddharth Karmakar

Prepared by

Bidisha Basu

MBA 2009 ~ Roll No. 520868015 ~ Centre 01835

INDEX

Student Declaration 1

Examiner’s Certificate 2

University Study Centre Certificate 3

Company Certifacate 4

Acknowledgement 5

What are Insurance 6

Type of Insurance 7

What is General Insurance 8-10

Company Profile 11

1st Year of Operation

12

Growth

12

Customer First

13

Insuring Fine Arts -Understanding 14

What is Fine Arts

14

Why Insure Fine Arts 14-15

Trends

16

Who can buy Fine Arts Insurance

16

The Company & Fine Arts Insurance Product 17-18

Fine Arts Insurance Policy 18

Surveyor, Global Indian Experts in Art Market 18

Basis of Valuation 19

Concerns 20

Proposal Forms 21-36

Claim 37

Steps for Claim Settlement 37

Art Market Experts 38

Expertise of Experts 39

Partial Loss Agreement 40

Special Provision 40

No Benefit to Bailee 40

Buy Back Agreement 40

Cover 40

Exclusions 41-42

Basis of Valuation at the time of claim 42-43

Condition 44

Due Diligence 44

Transits 44

Acquisitions 44

Protection Maintenance Clause 45

Notices and Proof of Loss 45

Subrogation 45-46

Recovered Property 46

Misrepresentation and Fraud 46

Cancellation 46-47

Governing Law and Jurisdiction 47

Scope of Fine Arts Insurance –Eastern Perspective 48

Lovers of Fine Arts, Kolkata Perspective 49

SWOT Analysis 50-52

Scope of Insurance 53

Who can be insured 54

Survey Methodology 54

Scope of Survey 54

Tabulations and Observations 55-56

The Take Out Point 57

Conclusion 58

Type of Insurance Policies 59

Importance of Fine Arts Insurance 59-60

International Market Development –Efforts60-61

The Indian Context –Market Development 61

Suggestion 62

Exhibits 63-67

Photographs 68-70

Student Declaration

I, Bidish Basu (Roll Number 520868015) a student of MBA Fourth Semester (Year 2009) (Centre Code 01835) hereby declare that this project entitled “Fine Arts Insurance Scope In The East” sto IFFCO Tokio General Insurance Company, Kolkata, submitted in partial fulfillment of the requirements of Masters of Business Administration to Sikkim Manipal University, India, is my original work and not submitted for the award of other degree, diploma, fellowship, or any other similar title or prize.

6th Decembar’09. ……………………. Howrah BIDISHA BASU

Reg. No. 520868015

Page 1

Examiner’s Certification

The project report of Bidisha Basu, “Fine Arts Insurance Scope In The East” is approved and is acceptable in quality and form

Internal Examiner External Examiner

Page 2

University Study Centre Certification

This is to certify that the project report entitled “Fine Arts Insurance Scope In The East” submitted in partial fulfillment of the requirements for the degree of Masters of Business Administration of Sikkim-Manipal University of Health, Medical and technological sciences Bidisha Basu has worked under my supervision and guidance and that no part of this report has been submitted for the award of any other degree, Diploma, Fellowship or other similar titles or prize and that the work has not been published in any journal or Magazine.

Reg. No. – 520868015 Certified

Page 3

25/10/09

To

Ms Bidisha Basu

54/2/1/1/1 Andul Road

“SATABDI” Flat-1B,

Howrah-711109

Sub: Appointment for Intership Project for MBA

Dear Ms Basu,

This is to inform you that you are being appointed for the Internship Project of MBA (From Sikkim Manipal University) under the guidance of Mr.Siddhartha Karmakar.

The Project will start on 30th Oct,2009 till 30th Nov,2009.

During the project you will learn nuances and subtleties of Insurance clauses and will have numerous practical experiences.

Wishing you the best of luck.

For Iffco Tokio General Insurance Co. Ltd.

(SIDDHARTHA KARMAKAR)

SBU Head Kolkata Commercial

TO WHOM IT MAY CONCERN

This is to certify that Ms. Bidisha Basu, student of 4th Semester, Master in Business Administration under (Sikkim Manipal University) has under gone her project worked in our concern for a period of 30 days (From 30th October’09 to 30th November’09). During this period we found her sincere and dedicated to ward her work.

We wish her all the best for her future.

For IFFCO Tokio General Insurance Co. Ltd.

(SIDDHARTHA KARMAKAR)

SBU Head Kolkata Commercial

Acknowledgement

Training is the most importantand vital process of

preparationfor any stream ofspecialized work or

profession without which perfection cannot be achieved.

Training is like a staircase, following which, a trainee like me, gathers various knowledge, step by step, stage by stage, more and more, for which I should remain grateful to my trainers – each and all – individually and collectively.

My heartfelt and sincerest regards to:

Mr.Siddhartha Karmakar, SBU Head-Kolkata Commercial

Mr. Amit Paul Chowdhury , Assistant Manager-SBU Kolkata Commercial

Bidisha Basu

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Fine Arts Insurance –Scope in the East –A Report

What is Insurance?

Insurance in its basic form is defined as “ A contract between two parties

whereby one party called insurer undertakes in exchange for a fixed sum

called premiums, to pay the other party called insured a fixed amount of money

on the happening of a certain event."

In simple terms it is a contract between the person who buys Insurance and an

Insurance company who sold the Policy. By entering into contract the

Insurance company agrees to pay the Policy holder or his family members a

predetermined sum of money in case of any unfortunate event for a

predetermined fixed sum payable which is in normal term called Insurance

Premiums.

Insurance is basically a protection against a financial loss which can arise on

the happening of an unexpected event. Insurance companies collect premiums

to provide for this protection. By paying a very small sum of money a person

can safeguard himself and his family financially from an unfortunate event.

For Example if a person buys a Life Insurance Policy by paying a premium to

the Insurance company , the family members of insured person receive a fixed

compensation in case of any unfortunate event like death.

There are different kinds of Insurance Products available such as Life

Insurance , Vehicle Insurance, Home Insurance, Travel Insurance, Health or

Mediclaim Insurance etc.

http://profit.ndtv.com/2008/01/16195839/What-is-Insurance.html



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Type of Insurance

Insurance provides compensation to a person for an anticipated loss to his

life, business or an asset. Insurance is broadly classified into two parts

covering different types of risks:

1. Long-term (Life Insurance)

2. General Insurance (Non-life Insurance)

Insurance type - Overall

http://www.dolcera.com/wiki/index.php?title=Image:Poverall.png

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What is General Insurance

Insurance other than ‘Life Insurance’ falls under the category of General

Insurance. General Insurance comprises of insurance of property against fire,

burglary etc, personal insurance such as Accident and Health Insurance, and

liability insurance which covers legal liabilities. There are also other covers

such as Errors and Omissions insurance for professionals, credit insurance

etc.

Non-life insurance companies have products that cover property against Fire

and allied perils, flood storm and inundation, earthquake and so on. There are

products that cover property against burglary, theft etc. The non-life

companies also offer policies covering machinery against breakdown, there are

policies that cover the hull of ships and so on. A Marine Cargo policy covers

goods in transit including by sea, air and road. Further, insurance of motor

vehicles against damages and theft forms a major chunk of non-life insurance

business.

In respect of insurance of property, it is important that the cover is taken for

the actual value of the property to avoid being imposed a penalty should there

be a claim. Where a property is undervalued for the purposes of insurance, the

insured will have to bear a rateable proportion of the loss. For instance if the

value of a property is Rs.100 and it is insured for Rs.50/-, in the event of a loss

to the extent of say Rs.50/-, the maximum claim amount payable would be

Rs.25/- (50% of the loss being borne by the insured for underinsuring the

property by 50%). This concept is quite often not understood by most insureds.

Personal insurance covers include policies for Accident, Health etc. Products

offering Personal Accident cover are benefit policies. Health insurance covers

offered by non-life insurers are mainly hospitalization covers either on

reimbursement or cashless basis. The cashless service is offered through Third

Party Administrators who have arrangements with various service providers,

i.e.,

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hospitals. The Third Party Administrators also provide service for

reimbursement claims. Sometimes the insurers themselves process

reimbursement claims.

Accident and health insurance policies are available for individuals as well as

groups. A group could be a group of employees of an organization or holders

of credit cards or deposit holders in a bank etc. Normally when a group is

covered, insurers offer group discounts.

Liability insurance covers such as Motor Third Party Liability Insurance,

Workmen’s Compensation Policy etc offer cover against legal liabilities that

may arise under the respective statutes— Motor Vehicles Act, The Workmen’s

Compensation Act etc. Some of the covers such as the foregoing (Motor Third

Party and Workmen’s Compensation policy ) are compulsory by statute.

Liability Insurance not compulsory by statute is also gaining popularity these

days. Many industries insure against Public liability. There are liability covers

available for Products as well.

There are general insurance products that are in the nature of package

policies offering a combination of the covers mentioned above. For instance,

there are package policies available for householders, shop keepers and also

for professionals such as doctors, chartered accountants etc. Apart from

offering standard covers, insurers also offer customized or tailor-made ones.

Suitable general Insurance covers are necessary for every family. It is

important to protect one’s property, which one might have acquired from

one’s hard earned income. A loss or damage to one’s property can leave one

shattered. Losses created by catastrophes such as the tsunami, earthquakes,

cyclones etc have left many homeless and penniless. Such losses can be

devastating but insurance could help mitigate them. Property can be covered,

so also the people against Personal Accident. A Health Insurance policy can

provide financial relief to a person undergoing medical treatment whether

due to a disease or an injury.

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Industries also need to protect themselves by obtaining insurance covers to

protect their building, machinery, stocks etc. They need to cover their

liabilities as well. Financiers insist on insurance. So, most industries or

businesses that are financed by banks and other institutions do obtain covers.

But are they obtaining the right covers? And are they insuring adequately are

questions that need to be given some thought. Also organizations or industries

that are self-financed should ensure that they are protected by insurance.

Most general insurance covers are annual contracts. However, there are few

products that are long-term.

It is important for proposers to read and understand the terms and conditions

of a policy before they enter into an insurance contract. The proposal form

needs to be filled in completely and correctly by a proposer to ensure that the

cover is adequate and the right one.

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The Company, IFFCO-Tokio General Insurance Company Limited (ITGI) is

a joint venture between IFFCO (Indian Farmers Fertilizer Cooperative) & its

associates and the Japanese insurance giant The Tokio Marine & Nichido Fire

Insurance Co. Ltd

The mamm o th tie-up (ITGI)

Indian Farmers Fertilizer Co Operative-IFFCO

•World’s largest fertilizer manufacturer

in cooperative sector

•35,000 co-op society and 167 farmers service center

•Having Plants at Kandla, Kalol, Phulpur and Aonla

•Production of Fertilizers (2004-05): 6.15 Million MT

•Turnover Achieved (2004-05): INR 72.24 Billion

•Profit After Tax (2004-05): INR 3.2 Billion

The Tokio Marine & Nichido Fire Insurance Co. Ltd

•Established in 1879

•Japan’s oldest and largest general insurance company and one

of the top five largest worldwide

•Leader in both commercial and personal insurances

•Capital of Rs. 3853 Cr.

•Net premiums written Rs. 71,153 Cr.

•Total assets of Rs. 351,595 Cr.

•Number of employees 17,402

•Number of agents (net total) 69,335

*Figures for the FY 2005

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Achievem en t in 1 s t year of operation

ITGI issued its first policy on 16th January 2001. Since the number of

satisfied customers of the Company has grown by leaps and bounds

and ITGI has garnered a significant market share amongst the private

players in the industry. It was one of the few Companies that

generated profits in the first year of operation, a commendable task

given the long incubation periods in the insurance industry. This was

achieved mainly due to the technical skill of the employees, tie-ups

with leading Reinsurance Companies across the world and focus on

putting in place world-class system and processes.

Growth in the subsequent Years

Page 12


Focus -Customer First

Customers’ service comes first and foremost for ITGI. Towards the

end, the Company has set up 5 Customers Service Centers for easier

and faster servicing of claims. These centers are located at Mumbai,

Kolkata, Vadodara, Bangalore, and New Delhi. The formation of

IFFCO-Tokio Insurance Services Co Ltd (ITIS), a subsidiary of ITGI

specializing in distribution of insurance products, will help the

Company offer personalized service to our customers through specially

trained Marketing Associates. In addition to the above, the Company

has also set up a call center where our helpful operators provide

customers, the information they require about insurance services,

products and also intimation regarding claims.

To maintain its high service standards, ITGI has extensively invested in

creating a strong and stable IT backbone .The systems not only cater

to the financial accounting requirements but are also capable of

handling large volumes of documentation and claims leading to faster

and more efficient handling of proposals and claims. The system also

provides online services for quotations, issues of policies and product

related information. The Company has put in places a disaster recover

system which ensures that even in the case of a catastrophe, the

operations of the company can be resumed within the least possible

time without any loss of data through the remote backup system,

resulting in seamless service to its customers.

Given the impressive track record of the previous years, the

Company is now looking towards expanding the scope and spread of

its activities, for which it has set up operating offices across the length

and breadth of the country. It also strongly focused on corporate

governance, with the aim of fulfilling its vision statement which talks

about becoming an industry leader by building customer satisfaction

through fairness, transparency and quick response.

.

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Insuring Fine Arts -An understanding

What is Fine Arts?

It is not only expensive paintings; it also includes the fondness and love for:

9 Sculptures

9 Visual Arts – ceramics, murals, works on paper

9 Antiques, Collectibles –rare stamps

9 Vintage vehicles

It could be an object subject to value appreci a tion due to age, descr i ption, history and rarity.

Why Insure Fine Arts?

“There is opportunity for fine arts insurance business in India, China and Eastern Europe. These countries

are culturally rich and have created a large amount of wealth” said Robert Read of Hiscox Global Markets.

• There are various private collectors of fine arts. Prices of fine

arts are high and so its protection is also very important. For

instance, a painting which worth million dollars would

definitely require insurance because any harm done to this

painting will definitely be a great loss to the owner.

• There has been a spurt in demand for contemporary Indian arts. The work of the

Indian artists are creating market for the potential buyers, leading to the collection

of those valuable works which should be insured for protection against any loss

• World over investments in fine arts has grown over by 55% annually.

• Exponential growth in transactions and investments in work of arts in India

• The possession of Fine Arts is a symbol of confidence, wealth, image and status.

• Pre and post war Indian Art is much in demand.

• Nowadays increasing terrorist activities are damaging many

valuable & antique

collections. So for protection against the loss incurring from

such activities

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insurance are required.

• Also to protect the valuables that are being stolen by

smuggling rackets for national & international market,

insurance are much required to recover such losses.

Page 15


Fine Arts Insurance -Global Trends

¾ World over investments in Fine Arts have grown over by 55% annually

¾ Prices in Indian Art have risen by 20 times since 2001

¾ Last year leading London auction houses reported £106 million of sales of Indian Art

¾ Projection for the year 2007 – double the figure

¾ “Mahisasura” by Tyeb Mehta was sold for a record £835,000 in 2006,

4 years back the same work was sold at £57,000.

Exhibit of Latest Trend - 2007

Bust of Maharaja Duleep Singh

‰ Asking Price £25,000-35,000

‰ Sold at £1.7mn

‰ Buyer-Private Indian Collector.

Developing Trend of buyers

Who can buy Art Insurance?

Art Lovers

‰ Private collectors – individuals and corporate.

‰ Art Dealers.

‰ Art Galleries.

‰ Art Fund.

‰ Warehousing Service Providers.

Page 16


ITGI and Fine Arts Insurance -Product Profile

Insurance companies are entering the least-explored domain of fine arts

insurance. Iffco Tokio General Insurance (ITGI) is coming up with two new

products in the niche area, particularly for vintage cars, and another one for

musical instruments. Premiums on these products may not be uniform and would

depend on clients and valuations of the assets. However, the fine arts insurance

contributes only a fraction of the gross premium income. But the insurer is

confident of growing at 10 per cent per annum.

This Policy grants a very comprehensive cover in respect of valuable property and

is normally issued only to clients with a good moral hazard and reputation.

Barring a few perils which are specifically excluded, the cover offers a very

comprehensive protection to the insured property

“The demand for vintage car insurance is high and we expect it to add 10 per cent

to the fine arts insurance business in the first year of launch and musical

instruments to contribute 5 per cent,” said Vikas Singh, head of finance and

liability, Iffco Tokio.

‰ Capacity

As per Lloyd’s Syndicates in the sector of Fine Arts the company is solvent.

‰ Targets

Private collectors, Art Galleries and Museums.

‰ Risk Coverage

Provides all risks coverage.

A comprehensive “ALL RISKS” coverage for accidental loss or damage while:

‰ In premises

‰ In transitPage 17


‰ At an exhibition

‰ Risk Valuation

Risks with limits up to US$ 25 million can be rated within the capacity.

‰ Underwriting Facilities

Under writing is centralized at corporate office. ITGI has a treaty arrangement

with underwriter Hiscox of the United Kingdom for providing risk cover in

different segments. The underwriter has clients worldwide, including the National

Gallery of London and museums in the United States.

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Basis of valuation- sum insured and Indemnity:

‰ Insurance of the owned property - as per agreed value

‰ Sold item not delivered - selling price(-)fee/commission.

‰ Purchased item -cost price + fee /commission

‰ Purchase in care custody and control market value and custody which ever is less.

‰ Usually the following %age are used

o Cost price +

20% Or

o Selling price(-)30%.

EXCLUSIONS:

‰ Natural ageing.

‰ Gradual deterioration.

‰ Inherent defect.

‰ Rust/oxidation, moth, vermin, warping, shrinking.

‰ Loss during repairing, reframing, restoring, retouching.

‰ Aridity, humidity, exposure to light, heat unless caused by fire, storm/ frost etc.

‰ Loss by collusion of partner, director.

‰ Inventory loss.

‰ At fairs unless notified.

‰ War and war like activity.

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The Fine Arts Insurance Policy

CONCERNS

™ Antecedents of the proposer /art dealers.

™ Moral hazard of the client.

™ Art warehousing activities.

™ The trade in fakes.

Page 20


Specimen Copy of Fine Arts Proposal Form for Private Collectors

IFFCO TOKIO GENERAL INSURANCE COMPANY LTD

ITGI / FAC / 01

Fine Art Insurance – Private Collectors

Proposal Form

1. PROPOSER (Mr/Mrs/Miss)

Address (for correspondence):

Pin Code:

Age of proposer:

Occupation of proposer:

Nationality of proposer:

2. LOCATION OF ITEMS TO BE INSURED

Address (if different to the above)

Pin Code

3. CONSTRUCTION AND USE

Are the buildings (including outbuildings):

(a) built of brick, stone or concrete and roofed with

slate, tile, asphalt, metal or concrete and in good

condition and repair?

(b) in an area which is free from flooding and not in the

vicinity of any rivers, streams or tidal waters? Yes/ No

(c) a flat or an apartment? (if yes, give the floor) Yes/No

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(d) used for any business or professional purposes open

to the public? Yes/No

(e) regularly left unattended by day or night? Yes/No

4. BUILDING AND DECORATING WORK

You must contact ITGI before entering into any agreement for any work to be carried out at the premises.

Do you intend to carry out any work on the premises insured

involving outside contractors? Yes/ No

If Yes, please give details:

5.ALARM

(a) Give the make of the alarm:

(b) Is it:

(i) bells only? Yes/ No

(ii) connected to the police? Yes/ No

(iii) central station? Yes/ No

(c) Does it protect all areas containing the insured items? Yes/ No

(d) Is the alarm under a maintenance contract? Yes/ No

If Yes, by whom?

6.OTHER SECURITY

(a) Are all final exit doors fitted with a 5 lever mortice

deadlock? Yes/ No

(b) Are all windows, fanlights and skylights fitted with

operated locks? Yes/ No

(c) Is your property protected by any other means?

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7.AMOUNTS TO BE INSURED

( All items must be individually listed by the proposer stating for each item the amount for which insurance is sought, which is to be the market value. The list must be submitted with this proposal. An independent professional valuation/appraisal may be required and should be forwarded with this proposal if available.)

(a) Pictures, paintings, sculptures and the like:

(b)Do the amounts insured represent current market value? Yes/ No

If No, please give details:

8. PREVIOUS INSURANCE

(a) Name of previous Insurers (if any):

(b) Date of expiry of previous Policy:

(c) Has any Insurer declined to accept, cancelled, refused

to continue or agreed to continue only on special terms

any insurance for the proposer or any other person to

whom this insurance would apply? Yes/ No


9. LOSSES

Has the proposer, or any other person whose property is to

be insured, sustained any loss or damage during the last six

years which would have been covered by this type of

insurance had it been in force? Yes/ No

If Yes, please state:

(a) approximate date of each loss or damage:

(b) circumstances and amount of each loss or damage:

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(c) with whom the property was insured:

10. OTHER INFORMATION Have you or any person residing with you, ever been

convicted of arson or any offence involving dishonesty,

e.g. fraud, theft or handling stolen goods? Yes/ No


Are there any other factors affecting this insurance of which

you are aware? Yes/ No


DECLARATION

You must read this before signing below.

To the best of my knowledge and belief the information provided in connection with this proposal, whether in my own hand or not, is true and I have not withheld any material facts. I understand that non-disclosure or misrepresentation of a material fact will entitle underwriters to avoid this insurance.

(A material fact is one likely to influence acceptance or assessment of this proposal by underwriters. If you are in any doubt as to whether a fact is material or not you must disclose it in the space below).

I understand that the signing of this proposal does not bind me to complete the insurance but agree that, should a contact of insurance be concluded, this proposal and the statements made herein and the information provided in connection with it will be relied upon by the underwriters in deciding whether to accept this insurance.

Date Signature of Proposer

PROHIBITION OF REBATES

Section 41 of the Insurance Act 1938 provides as follows:

1. No person shall allow, or offer to allow, either directly or indirectly as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the Policy except, such rebate as may be allowed in accordance with the published Prospectus or Tables of the Insurer.

2. Any person making default with the provisions of this Section shall be punishable with fine which may extend to five hundred rupees.

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Specimen Copy of Fine Arts Proposal Form for Art Dealers & Gallery Owners

IFFCO TOKIO GENERAL INSURANCE CO.LTD

PROPOSAL FORM

OF

FINE ART

INSURANCE

FOR

ART DEALERS

&

GALLERY OWNERS

Page 25


Before any question is answered read carefully the declaration at the end of this proposal which you are required to sign. Answer all questions in full. Tick Yes/No boxes.

1. PROPOSER

Trading name

Period for which the proposer has traded under the current name

Years

2. PREMISES

Address of the main location

Is the main location

Page 26


(a) Built or brick, stone or concrete and roofed with state, file asphalt, metal or concrete and in

good condition and repair? Yes No

If No, give details

(b) Do you keep stock in the basement? Yes No

(c) Do you share your main location? Yes No

If Yes, with whom and for what purposes?

(d) Do you occupy any other location for the purpose of the business? Yes No

If Yes, complete an additional location sheet for each

3. PROTECTIONS

(a) Is a burglar alarm fitted? Yes No

If Yes:

(i) is it connected to a police and /or central station ? Yes No

(ii) are movement detectors installed ? Yes No

(iii) are panic buttons installed ? Yes No

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(iv) is there a maintenance contract? Yes No

(v) does it protect all areas containing the

insured items? Yes No

(b) State types of locks on all external doors: (e.g: five lever mortice deadlock etc)

(c) State types of locks on all windows and skylights (e.g: screw or key operated)

(d) Give details of all other security protection:(i) closed circuit television Yes No

(ii) safe Yes No

(iii) strong room Yes No

(iv) access control Yes No

(v) buzzer entry Yes No

(vi)others (detailed below) Yes No

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4. STOCK

Give the approximate split of your stock values:

(a) Paintings pre 1960, drawings and prints %

(b) Painting post 1960 %%%

(c) Books %

(d) Statues and sculptures of a non-fragile nature, items of non-precious metals or wood %

(e) Porcelain, pottery, ceramics, glass, jade, and other items of a brittle or fragile nature %

(f) Furniture %

(g) Clocks, barometers, mobiles, and %

other mechanical art

(h) Silver %

(i) Jewellery, watches and gold %

Any other stock (give full details below)

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4.BASIS OF SETTLEMENT

On what basis do you require claims in respect of your own stock to be settled?

(a) Cost price only Yes No

(b) Cost price plus an uplift Yes No

If yes, state a percentage %

(c) Others ( details below)

5.POLICY LIMITS

(a) State the Sum Insured for:

(i) Stock including all entrustments

(ii) Trade and office equipment, furnishing, fixtures and fittings

(iii) Reference library

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Do the above Sums Insured represent the total

value of stock that will be at risk? Yes No

If No, give details

(b) State the transit limit required

(c) State the average value of monthly:

(i) domestic transits

(ii) international transits

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(d) Which trade fairs and exhibitions will you attend?

(e) State which transit companies you normally use

7. PREVIOUS INSURANCE

Name of previous Insurers and Brokers (if any)

Expiry date of previous Policy

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Name of trade fair/exhibition Limit required


Has any Insurer declined to accept, cancelled , refused to

continue or agreed to continue only on special terms any

insurance for you or any other person to whom this

insurance would apply? Yes No

If yes, give details

8. LOSSES

Have you or any other principals, partners and directors

sustained any loss or damage during the last six years

which would have been covered by this type

of insurance had it been in force? Yes No

If Yes, for each incident give the approximate date,

Brief circumstances and amount

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Date Circumstances Amount


9. OTHER INFORMATION

Have you or any principals, partners or directors ever been

convicted of arson or any offence involving dishonesty,

e.g. fraud, theft or, handling stolen goods? Yes No

10. REFERNCES

Give names and addresses of two referees from your trade

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DECLARATION

You must read this before signing below:

To the best of my knowledge and belief the information provided in connection with this proposal, whether in my own hand or not, is true and I have not withheld any material facts. I understand that non-disclosure or misrepresentation of a material fact will entitle underwriters to avoid this insurance.

(A material fact is one likely to influence acceptance or assessments of this proposal by

underwriters. If you in any doubt as to whether a fact is material or not your must disclose it in the space below.)

I understand that the signing of this proposal does not bind me to an insurance contract but agree that , should a contract of insurance be concluded, this proposal and the statement made therein shall from the basis of the contract.

Signature of proposer Date

Please use separate sheet whichever space is insufficient in the Proposal Form for replying you should keep a record (including copies of any letters) of all information supplied to insurer for the purpose of entering into this insurance. You must inform us of any change in circumstances which will materially affect this insurance. If you are in any doubt you should consult your insurance agent.

Page 35


Section 41of the Insurance Act 1938 provide as follows:

1. No person shall allow, or offer to allow, either directly or indirectly as an inducement to any person to take out or renew or continue an insurance I respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the Policy except, such rebate as may be allowed in accordance with the published Prospectus or Tables of the Insurer.

2. Any person making default with the provisions of this Sections shall be punishable with fine which may extend to five hundred rupees.

Page 36


CLAIM PROCEDURES FOR FINE ART CLAIMS

Along with the increasing portfolio comes the increased

possibility of claims. It is very important to arrive at an

understanding as to

• How we are going to handle these claims so that the

insured’s must have some confidence about the company.

• Basis of indemnity at inception.

This is necessary for the healthy growth of the business.

KINDS OF CLAIMS

1. Total Loss Claims (no great difficulty in settling this).

2. Partial Loss Claims (this needs attention).

THE POLICY COVERS THE FOLLOWING IN CASE OF PARTIAL LOSSES:

1. Restoring cost. - The insurer is liable to pay the repairing cost

(restoration) for restoring the damaged portion of the article insured.

2. Depreciation in the value of the artwork: - while calculating the claims

for partial loss, depreciated value of the article insured is taken into

consideration.

Page 37


FOR CORRECT SETTLEMENT OF CLAIM THE FOLLOWING

STEPS ARE REQUIRED:

1. Reporting of Claim :- Claim has to be reported to the nearest claim office. Online, SMS facilities

are also available for such. In case of theft & fire, claim intimation should be

submitted along with the FIR & Fire Brigade report respectively. In both the

general & special cases, claim form has to be duly filled up manually or online.

2. Appointment of surveyor:-

General surveyor is usually hired for estimating the loss in case of

books etc. Specialist surveyors are required for dealing in fine arts

because general surveyors have no expertise in quantifying the

loss. Internationally, art market experts are employed for assessing

these losses. After claim is reported surveyor will go through the

policy papers & valuation report, then the assessment of the loss

was made. But in cases such as theft, burglary etc investigator is

appointed & also the claim is not settled unless & until the final

police report is received.

ART MARKET EX PE RTS

1. Dadiba Pundole

Pundole Art Gallery, associated with Sotheby’s.

2. Amrita Zaveri and Mallika Sagar

Both these ladies were with Christies’ representatives in India,

now they have started their own art advisory.

3. Chatterjee & Lal

Headed Bowring’s Indian operators. Now started their own advisory.

4. Geeta Mehra Sakshi Art gallery.

5. Shireen Gandhi Gallery Chemould

6. Sharan Apparao Apparao Gallery

Page 38


Expertise of the Experts

A panel of the best experts available locally who are well

respected in India and are consulted routinely by the

international Fine Arts Institutions like, The Christies and

Sotheby’s.

The experts are used for the purpose of valuation at the time of

inception of risk as well. The valuer who has done the valuation before

commencement of risk is usually not appointed as surveyor for

assessment of claim amount. In case insured not agreeing with the

assessment done by the expert, one more expert may be used in

consultation with the insured. Experts have their own fee and insured

should have a discussion with them to arrive at mutually acceptable

fee. In case of partial losses where the insured wishes to surrender the

work, artwork can be sold after restoration, in the secondary art

market.

Essentially the assessment of Fine Arts claim is a negotiation between

the insurance company, the expert, and the insured.

PARTIAL LOSS AGREEMENT:

In case of partial loss agreement due to perils insured against, the

amount of loss shall be the cost and expense of restoration including

additional charges insured in connection therewith. The assured and

the underwriters should agree upon depreciation, if any, after

restoration. In the event if the assured and the underwriters does not

agree on the amount of depreciation, property is to be sold at public

auction and the net proceed goes to the account of the assured.

Underwriters have to pay the assured the difference between the

amount so realized and the insured value of the property. In no event

shall underwriters be liable for more than the insured value of the

property.

Page 39


SPECIAL PROVISION:

It is a condition of this insurance that the assured to the best of their

ability, will provide for the property insured hereunder to be packed,

unpacked and shipped by competent and or professional packers and

shippers.

NO BENEFIT TO BAILEE:

It is hereby warranted that this insurance shall in no way insure

directly or indirectly to the benefit of any carrier or other bailee.

BUY BACK AGREEMENT:

In the event of loss hereunder, for which underwriters have made

payment, underwriters agree to offer the assured first choice of

buying back the recovered property if the property is recovered

within two years from the date of settlement. It is agreed that

underwriters may request an amount no higher than the amount,

which was paid by them when the original claim settlement was made

less any deductible, if applicable.

COVER:

The property described in the attached schedule (the “Schedule”) is

insured against physical loss or physical damage occurring during the

period of insurance while at the named location(s) or within the

territorial limits specified in the Schedule, subject to the following

exclusions, basis of valuation and conditions.

Page 40


EXCLUSIONS:

The insurer is only liable to the extent that any other valid insurance

would fail to cover in the event of a claim. This insurance does not

cover:

A. Loss or damage caused by or resulting from:

1. Natural ageing

2. Gradual deterioration.

3. Inherent defect.

4. Rust or oxidation.

5. Moth or vermin.

6. Warping or shrinkage.

7. Repairing, restoring, retouching, or any other similar process.

8. Aridity, humidity, exposure to light or extremes of

temperature, unless such loss or damage is caused by storm,

frost or fire.

B. Loss from or damage in or on unattended vehicles,

unless in the custody of a competent professional carrier.

C. Electrical or mechanical fault or breakdown.

D. The amount of the excess stated in the schedule for each and every loss.

E. Loss or damage or liability directly or indirectly occasioned by,

happening through or in consequence of war, invasion, acts of

foreign enemies, hostilities, civil war, rebellion, revolution,

insurrection, military or usurped power. But only loss due to

terrorism activities can be covered by paying additional premium,

known as “ Add on Cover”

F. Loss or damage caused by or resulting from confiscation,

nationalization, requisition or destruction of or damage to property

by or under the order of any government or public or local

authority.

Page 41


G. 1. Loss or destruction of or damage to any property whatsoever

or any loss or expense whatsoever resulting or arising there

from or any consequential loss.

2. Any legal liability of whatsoever mature directly or indirectly

caused by or contributed to by arising from.

3. Ionising radiations or contamination by radioactivity from any

nuclear fuel or

from any nuclear waste from the combustion of nuclear fuel.

4. The radioactive, toxic, explosive or other hazardous

properties of any explosive nuclear assembly or nuclear

component there of nuclear reaction, nuclear radiation or

radioactive contamination.

5. Theft or dishonesty committed by or in collusion with any

principal, shareholder

(beneficial or otherwise), partner, director or other officer or any

employee of the Insured, or any person to whom insured property is

entrusted or loaned.

6. loss or shortage discovered while taking inventory

7. loss of or damage to property unless it is entered in the Insured’s

stock records.

loss or damage at any trade fair, unless specifically notified to and

agreed by the Insurer in advance

BASIS OF VALUATION:

A. The basis of valuation for settlement:

The basis of valuation for settlement will be:

for items which belong to the Insured, the basis specified in the Schedule;

for items sold but not delivered to the purchasers, the selling price;

for items bought on behalf of the Insured’s client, the purchase price

plus any fee or commission pre-agreed and made in writing;

Page 42


for items in the care, custody or control of the Insured which belong

to third parties, the lesser of the market value immediately prior to

the loss and the Insured’s legal liability to the third party;

for fixtures and fittings, the lesser of replacement cost after an

allowance for depreciation or the cost of repair.

In no event will ITGI be liable for more than the limits of liability or Sum

Insured set out in the Schedule.

For items individually listed, the value agreed by the insurer and

show in the schedule. The insurer will not be liable for more than

the agreed value.

For items not individually listed the market value immediately

prior to the loss. Nevertheless in no event will the insurer be

liable for more than the applicable limit of liability set out in the

schedule.

B. In the event of partial loss of or damage to any item insured, the

amount payable will be the cost and expense of restoration plus any

resulting depreciation, but not exceeding the full value of that item,

valued as in A above.

Page 43


C. Following payment of the full amount insured for any item, pair

or set, the insurer will become the full owners and reserve the

right to take possession of the, pair or set.

CONDITION

Anything to be done or compelled with by the insured shall be a

condition precedent to the insurer’s liability.

1. DUE DILLIGENCE

The insured must take all reasonable care and measures to protect

the insured property and to maintain it in a good and proper

condition.

2. TRANSITS

The insured must ensure that the insure property is packed for

transit by competent professional packers.

3. ACQUISITIONS

The aggregate sum insured may be increased by up to 10% to cover

new acquisitions provided insurer is notified within 60 days and an

additional premium is paid. This allowance will be reinstated following

each notification to the insurer.

Page 44


4. PROTECTION MAINTAINCE CLAUSE

The insured must ensure that all physical protections notified to the

insurer are engaged whenever the named location(s) are left

unattended. The insured must ensure that at all fire alarms and

security systems notified to the insurer is activated whenever the

named location(s) are left unattended. The insured must also advise

the insurer as soon as reasonably possible if for any reason a system

is not working properly. The insurer may then vary the terms and

conditions of this insurance. A reputable company must regularly

service all systems under contract at least annually.

5. NOTICES AND PROOF OF LOSS

In the event of loss or damage that may give rise to a claim under this

insurance, notice is to be given to the insurer as soon as reasonably

possible and to the police if a crime is suspected. In the event of loss

or damage to the insured property the insured must give the insurer

such relevant information and evidences as may reasonably be

required and co- operate fully in investigation or adjustment of any

claim. If required by the insurer, the insured must submit to

examination under oath by any person designated by the insurer.

6. SUBROGATION

If the insurer becomes liable for any payment under this insurance in

respect of loss, the insurer shall be subrogated, to the extent of the

payment, to all the rights and remedies of the insured against any

party in respect of the loss and shall be entitled at their own expense

to sue in the name of the insured. The insured shall give the insurer al

such assistance in his power as the insure may require to secure

their rights and remedies and, at the insurer’s

Page 45


request, shall execute all documents necessary to enable the insurer

effectively to bring suit in the name of the insured. The insurer shall

be entitled to all recoveries from any third party up to the amount of

their outlay including their own cost and expenses.

7. RECOVERD PROPERTY

The insured will have the right to purchase from the insurer any

property recovered from which the full sum insured has been paid in

full settlement of a claim at the lesser of:

1. The amount of the settled claim plus interest from the date

of settlement at a relevant prevailing bank base rate plus loss

adjustment and recovery expenses

2. The fair market value at the time of recovery.

Insurer will notify the insured by post at his last known address of the

right to purchased property recovered and the insured will have 60

days from the date of notice to exercise the right to repurchase.

8. MISREPRESENTATIONS AND FRAUD

If the Insured has concealed or misrepresented any material fact or

circumstances relating to this insurance or makes any claim knowing

it to be fraudulent, this insurance shall become void.

9. CANCELLATION

This insurance maybe cancelled at any time by the insured in

writing to the insurer who affected this insurance. The insurer will

then be entitled to the customary pro rata proportion of the

premium. This insurance may also be cancelled by or on behalf of

the

Page 46


insurer by giving 30 days notice in writing sent by post to the

insured at his last known address. The insurer will then be entitled

to retain the pro rata proportion of the premium. Notice will be

deemed to have been given if sent by post properly addressed.

10. GOVERNING LAW AND JURISDICTION

This insurance is governed by the laws prevailing in India, i.e. as per

Insurance Act 1938.Any terms or condition of this policy that are in

conflict with the laws of India where this policy is issued are hereby

amended to confirm to such laws.

Both the insured and the insurer irrevocably and unconditionally

agree to submit any dispute under or in any way relating to this

insurance to the exclusive jurisdiction of the courts of India.

Page 47


Eastern Perspective

Page 48


Lovers of Fine Arts - East e rn Perspective

People love art and feel proud in possessing valuable items

related with history, heritage and culture.

With Kolkata as the central point of eastern parts of India,

it is also called the cultural capital of the country.

The city of Kolkata is known for its heritage of art and culture

As one of the oldest cities with civilized settlements dating

back to more than three centuries

Economic capital of numerous erstwhile Princely States

The Heritage of Kolkata still beckons it as the Cultural Capital of India

East is rich with ingredients of Fine Arts

Page 49


SWOT Analysis

Visioning is best aided by SWOT analysis.

"SWOT" is a simple acronym for Strengths, Weaknesses,

Opportunities and Threats. SWOT analysis consists of the

following two activities:

1. An assessment of the organization’s internal Strengths

and Weaknesses and

2. An assessment of the Opportunities and Threats posed by

its external environment

SWOT analysis provides a framework for visioning by

helping the planners to identify and priorities the

organization’s GOALS and to further identify the

strategies of achieving them.

Assessing the Internal Environment

Internal scan or assessment of the internal environment of

the organization involves identification of its strengths and

weaknesses i.e., those aspects that help or hinder

accomplishment of the organization’s mission and

fulfillment of its mandate with respect to the following

Four Ps:

1.People (Human Resources)

2.Properties (Buildings, Equipments, Fine Arts and other

facilities)

3.Processes (Such as Direct Marketing, Channel

Marketing etc.)

4.Products (Fire, Engineering, Marine, Motor, Misc. etc.)

Assessing the External Environment

External scan refers to exploring the environment outside

the organisation in order to identify the opportunities and

threats it faces. This involves considering the following:

Events, trends and forces in the Social, Technological,

Economical, Environmental and Political areas (STEEP).

Identifying the shifts in the needs of customers and

potential clients and

Identification of competitors and collaborators.

Page 50


SWOT Analysis - Insurance sector

Strength :

Patents

Insurance having correctly good market.

The product variety is increasing. The increasing

demand and market of Fine Arts is leading to the

scope of introducing new product – “Fine Arts

Insurance”

IT bringing new dimensions to insurance sector

Weakness :

Insurance companies are sometimes less responsive

towards the changing needs

Premium rate are decreasing and commissions are

increasing

Buying insurance policy is a cumbersome process

Competitors are providing similar products and

services, such as recently; Bajaj Capital’s insurance

broking has forayed into fine arts insurance. ICICI

Lombard and Oriental Insurance are the other

players in this segment.

Opportunity :

Technological advancement is making the process

easier. Paperless transactions like online facility, call

centre services etc. are available.

According to the change of life style, needs of the

customers products and services are tailor-made.

Peoples’ interests in acquiring valuable fine arts as

their personal possessions (status symbol) are

creating the scope for the insurer.

Like mobile banking mobile insurance could be a hit

Page 51


Threat :

Weather cycle.

New substitute product emerging

Increasing expenses and lower profit margins will hit

hard on the smaller agencies and insurance

companies.

Government regulations on issues like healthcare

and terrorism can quickly changed the direction of

insurance.

Page 52


Scope of Insurance

Pride possessions like

• Valuable Paintings

• Books

• Musical instruments

• Valuable antiques

• Any object with value appreciation due to age, description, history and rarity.

Who can be Insured

‰ Private collectors – individuals and corporate.

‰ Art Dealers.

‰ Art Galleries.

Page 53


Survey Methodology

An exhaustive study was made to identify the Art Lovers

possessing insurable object de art.

One to one interview

An interactive format in the form of a questionnaire was

prepared for the purpose of conducting the interview and

recording the responses. (Exhibit-1)

Scope of Survey

Survey was limited to the city limits of Kolkata and

identified Art Galleries. (Exhibit-2)

10 Art Galleries were visited

Official Representatives of those 10 Art Galleries visited were interviewed.

Page 54


T abulations & Observations

During the various interview sessions with the Official Representatives of the Art

Galleries it was observed

™ 5 out of 10 declined to be interviewed.

™ 5 Art Galleries responded out of total 10 visited Response rate 50%

™ Among those interviewed, the Official Representatives were reluctant to provide

with proper information.

™ The details provided can be rated at 4 on a scale of 1-10

Table-1

Designation of Person Interviewed and Knowledge of Fine Arts Insurance

Sl. Name of Gallery Designation Knowledge

1 Birla Academy of Art and Culture

Director Yes

2 Akriti Art gallery Manager Yes

3 Chemould Managing director

Yes

4 Gandhara art gallery Owner Yes

5 Gallery 88 Manager Yes

Page 55


Table-2

Insurance Details

Name of Gallery

Insured

Insurer

Policytaken

Criteria for

Selecting Birla Academy of Art and Culture

Yes NIC StandardAll risk

Cost

Akriti Art Gallery Yes NIC Not disclosed

Claim servicing

Chemould No None Nil Claim servicing

Gandhara Art Gallery

No None Nil Nil

Gallery 88 No None Nil Claim servicing

Table-3

Future Plan to take Comprehensive Risk Policy

Name of Gallery Interest

Birla Academy of Art and Culture

Yes

Akriti Art Gallery Yes

Chemould

No

Gandhara Art Gallery Yes

Gallery 88

Yes

Page 56


Observations

o 100% of the respondents are aware of Fine arts Insurance

o 40% have taken Insurance and 60% are not insured (or not disclosed)

o None of the respondent have comprehensive insurance policy

o 80% of the respondent have shown interest

for comprehensive insurance cover for their Art

objects

o 60% respondents have preference for Insurance company having

better claim servicing record

The Take-out Point

Very few have insured these priceless possessions

–thereby resulting in great scope

for fine arts insurance in the East

Page 57


Conclusion

Affluent Indians are buying fine art, antiques and expensive

collectibles as part of a hobby or a diversified investment strategy.

Increasingly, during this period of stock market volatility, financial

advisers are viewing these valuable possessions as important

components in a client's overall asset base and estate, which

need protection from various exposures to risk.

There's a tremendous opportunity for offering appropriate risk

management information and insurance coverage. Research shows

that many people are not aware of the limited amount of coverage

they have for fine art and other valuables under a standard

homeowner’s insurance policy. Regardless of their wealth, many

clients do not realize that these prized possessions are drastically

underinsured and inadequately protected.

During survey many respondents realized the need for insurance

coverage of their valuable possessions.

Hence, real opportunity to educate clients about appropriate

coverage for their fine arts and other prized possessions.

As a reward, agents and brokers can increase their revenues and at

the same time can build more meaningful, long-term relationships

with clients.

Page 58


Clients with extensive art collections MUST have a fine arts

insurance policy, as householder’s policies may not cover:

• Broken or lost items,

• Provide worldwide coverage,

• Limitations on transportation and off-site storage.

Loss due to terrorism activities (which can be

covered by paying additional premium, known as “Add on Cover”)

Types of f i ne arts insurance policies

Scheduled

Each item is individually listed on the policy for a stated insured amount.

Blanket

Policies that allow a collector to obtain coverage of items without

specifically itemizing the objects. Most blanket policies will include

a maximum limit per item.

Create Importance of Fine Arts Insurance

Suggest clients that they should:

9 Create inventory of personal possessions - with descriptions, values,

conditions & serial nos. for each item, its location, appraised value,

insurance history, and exhibition. Accurate records

helps in recovery or claim

9 Inventory c o mplete d - client clearly Know how much they own & can be

guided to protect the items physically and financially.

9 Advise client to contact expert on purchase of any valuable item. Review

client's inventory, at the

time of renewal of householders’ or motor policy.

Page 59


9 Position as specialists in insuring fine arts and other valuables.

9 Establish referral relationships with fine arts appraisers and join local collector groups.

9 Develop relationships with insurers known for their fine arts expertise.

9 Understand needs of the affluent individual collector.

9 India is a land of arts and arts related things hence there is all the

more need for fine arts insurance

International Market Development Efforts

In the international market the business of fine arts insurance is

profitable and a number of insurers –Chubb, AIG, ACE, Zurich, and

Atlantic Mutual to name a few are pursuing the art insurance

business and for at least one insurer, AXA Nordstern Art, insuring

art is the only thing they do.

Initially, in the international markets also, to create awareness

about Art Insurance "Antiques Roadshows,” was organized

by the Insurance companies to inform people about the

potential value of their personal collections of fine arts,

collectibles, antiques, and other valuable objects.

At Indianapolis, during one such “Antiques Roadshow," a

previously unknown N.C. Wyeth painting of biblical subjects,

including Christ, surfaced and was appraised at $250,000. It

was one of the most valuable items uncovered in the show's

history.

Page 60


And Chubb a leading Insurer in the field of Art Insurance in the

international market found out, through a survey conducted at

the Indianapolis show, that while attendees hoped the items

they brought were worth a fortune, over 40 percent reported

that their treasures were underinsured.

The Indian context

The awareness of Art Insurance is very low and even if it is

there than most of the Art objects are under insured. This fact

is applicable to all barring few exceptions from among-

• Affluent private collector,

• Exhibition,

• Museum,

• Art gallery,

• Corporate collection.

Page 61


Suggestion

To make this form of Insurance a must

among the prospects as mentioned above, it

is suggested that due awareness about the

necessity for covering the Art Objects with

proper insurance should be created through

ROAD SHOWS, PRINT and ELECTRONIC

Media as it has been done by the foreign

Insurance Companies during the initial days of

Art Insurance in the International market. By

becoming first in this

field will help the Company to generate profit

in the long run from this

untapped market.

The market of the Traditional General

Insurance has reached its saturation point and

in the detariff regime insurance companies are

surviving for that reason ITGI is diverting their

focus from traditional business to specialty

line of business. And if it can grab the

untapped market then ITGI can hold its own

position.

Page 62


Exhibit-1

FINE ARTS INSURANCE POLICY

QUESTIONNAIRE

INTERVIEW NO.

CENTRE KOLKATA SUBURBS

FIELD INFORMATION INTERVIEW DATEINTERVIEW TIME

INTERVIEW START TIME INTERVIEW END TIME DURATION

ƒ Name of Organization:

ƒ Location / Landmark:

ƒ Detail of Respondent:

ƒ _Ph

ƒ Office Address:

ƒ _Ph

Location / Landmark: - - -- - -- - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

DIRECTOR/APPRISER/CHIEF VISUALISER or ANY SENIOR MEMBER OF THE ORGANIZATION:

Good . I am a student of ….., a leading BBA/MBA college in India. As part of my college project, I am carrying out research on financial products and services. As part of the one such research I am required to interview people like you in this area. Could you spare sometime and answer a few question please. Please take my assurance that the information you will provide me in this survey will be used only for research purposes to create better financial products and will not be misused in any form. Also I am not involved in the sales or promotion of any product. Thank you.

Page 63


SCREENER SECTION

SHOW ORGANISATION CARDQ1 Do you or does your organization work for any of the Categories mentioned on this card?

Here by Fine Arts Products / services I’m referring to Paintings, Sculptures, Creative Visuals, Antiques including any or all works of creative talent.

Any art gallery 1 CONTINUE

Any individual having collection of fine arts 2 CONTINUE

Any Institute promoting Fine Arts 3 CONTINUE

Any corporate having collection of fine arts 4 CONTINUE

Q2 Have you heard of fine arts insurance?

YES 1 CONTINUE

NO 2 CONTINUE

Q2a Do you insure your fine arts pieces?YES 1 CONTINUE

NO 2 CONTINUE

Q2b What type of policy have you taken for your fine arts pieces?TYPE SUM

INSUREDPREMIUM RENEWAL

DATEINSURER

FIRE YES

BURGLARY YES

STANDARD ALL RISK YES

FINE ARTS YES

Other……………………………. YES

Q2C Would you be interested in a comprehensive fine arts insurance policy in future?

YES 1 CONTINUE

NO 2 CONTINUE

Q3 Who in your organization primarily takes decisions on insuring the works of Fine Arts?

MYSELF 1 CONTINUE INTERVIEW WITH SAME RESPONDENT

SOMEONE ELSE 2 ASK FOR THE PERS AND REINTRODUCE YOURSELF

BOTH ME AND SOMEONE ELSE 3 CONTINUE INTERVIEW WITH SAME RESPONDENT

Page 64


SHOW METHODOLOGY CARD

Q4 What would best describe your methodology of insuring your objects of possession in the field of Fine Arts?Please have a look at this card and choose 5 statements which best describe how you choose a savings schemes / products.MULTIPLE CODING POSSIBLE

METHODOLOGY OF INVESTING Q12

Want professionals to manage / advise 1

Trust on tips from others 2

Choose options that is most comprehensive 4

Purchase after careful study and valuation 10

Prefer long term insurance 13

Invest after seeking advice / others options 15

Others…………………………… 16

Q5 Can you please also tell me his/ her current designation?

DESIGNATION

Q6 OBSERVE AND CODE GENDER OF RESPONDENT. DO NOT ASK.

Male 1 Female 2

SHOW PROFILE CARDQ7 Out of the objects of fine arts enlisted above how would you categorize them for insurance cover?

CATEGORIES APPROX VALUE INSURER PREMIUM

Paintings

Sculptures

Antiques

Others

Q8. Have you taken out any of the following type of insurance?

TYPE PREMIUM(RS)

INSURER DATE OF RENEWAL

FIRE

MARINE

OTHERS……………..

OTHERS……………..

OTHERS……………...

Page 65


Q9 Which of the following would you give preference for choosing an insurance company?

BASIS RANKCostBrand nameClaim servicingPolicy deliveryOthers……………………………..

Q10 How would you rank the following GENERAL INSURANCE companies?

NAMES RANKNEW INDIA ASSURANCEORIENTAL INSURANCE CO.NATIONAL INSURANCE CO.UNITED INDIA INSURANCEICICI LOMBARDBAJAJ ALLIANZ GENERAL INSURANCEIFFCO TOKIOROYAL SUNDARAMHDFC CHUBBRELIANCE GENERAL INSURANCETATA AIG GENERAL INSURANCECHOLA MANDALAM

THANK RESPONDENT AND TERMINATE INTERVIEW

Page 66


Exhibit-2

1 CHEMOULD12-F, Park Street, Queen's Mansion. Kolkata-700 016.

15 GALERIE 8828B, Shakespeare Sarani. Kolkata-700 017.Phone- 2247-2274

2 GANDHARA ART GALLERY1B, Gurusaday Road, Flat 5A. Kolkata-700019. Phone- 2247-1605, 2280-1790

16 GALLERY 8825A, Shakespeare Sarani. Kolkata-700 071. Phone- 2247-22743 ALTERNATIVE ART GALLERY

12D, Park Street. Kolkata-700 016. Phone- 2229-

17 GALLERY KATAYUN4A, Auckland Square, Jassal House. Kolkata-700

4 AMBIENCE ART GALLERY53, Syed Amir Ali Avenue. Kolkata-700019

18 GENESIS ART GALLERY88, Middleton Street. Kolkata-700 071. Phone-

5 ARTS ACREP.O. R.Gopalpur. 24 Parganas (N)-743 518.Phone- 2573-9468

19 GALLERY LA MERE3, Regent Park, Lakshmi's House. Kolkata-700 040.Phone- 2471-2612, 2481-1557

6 BIRLA ACADEMY OF ART & CULTURE108 & 109, Southern Avenue.

20 GLOBAL ART GALLERY11/1, Sarat Bose Road. Kolkata-700 020. Phone- 2235-1599

7 BIZALLIANCE GALLERY10, Wood Street. Kolkata-700 016. Phone- 2240-

21 IDENTITY22, Ballygunge Park. Kolkata-700 019. Phone-

8 CALCUTTA INFORMATION CENTRE1/1, A.J.C. Bose Road. Kolkata-700 020.

22 METROPOLITAN ART GALLERY7, J.L. Nehru Road. Kolkata-700 013.Phone- 2248-8268

9 CHEMOULD ART GALLERY12F, Park Street. Kolkata-700 016.Phone- 2229-8641

23 OXFORD BOOK STORE17, Park Street. Kolkata-700 016.Phone- 2229-7662

10 CHITRABHANU ART CENTRE161/2/1, Rashbehari Avenue. Kolkata-700019.

24 SANSKRITI ART GALLERY5C, Alipore Park Road, Kolkata - 700 027 Phone-2448 4925, Cellular-

11 CHITRAKOOT ART GALLERY55, Gariahat Road. Kolkata-700 019.Phone- 2475-2275

25 SPANDAN ART GALLERY87, Park Street. Kolkata-700 016.Phone- 2226-7509/5594

12 CIMA ART GALLERY43, Ashutosh Chowdhury Avenue. Kolkata-700 019.

26 THE ADDRESS28/1, Shakespeare Sarani, Ganga Jamuna Building. Kolkata-700 017.

13 CIMA GALLERY43, Ashutosh Choudhury Avenue, SunnyTowers. Kolkata-700 019. Phone-

27 THE RAMKRISHNA MISSION INSTITUTE OFCULTUREGolpark. Kolkata-700 029.Phone- 464-1303 (3 lines), 2466-1235

14 GAGANENDRA PRADARSHANSHALA1/1, A.J.C. Bose Road. Kolkata-700

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The Academy of Fine Arts

Birla Academy of Art and Culture

Abanindranath Tagore GalleryGovernment College of Arts and Crafts

Page 68


Seema KohliMahua Art Gallery

Satish GujralAkrity Art Gallery

Jamini RoyPage 69

http://www.artslant.com/ind/events/show/82762-mystical-narratives

http://www.artslant.com/ind/events/show/76740-paintings-sculptures

http://www.westbengaltourism.gov.in/application/Img_Maint/uploads/2/Jamini-Roy.jpg


Ganesh PynePaine’s work in Tempera

Rabindranath TagorePortrait of a lady – 1930’s

]]

Abanindranath Tagore

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http://www.artofbengal.com/ganeshpaine6.jpg

http://www.delhiartgallery.com/artworks/rabindranath-tagore-paintings-1166.aspx

http://www.delhiartgallery.com/artworks/abanindranath-tagore-original-prints-1210.aspx

Documents

Fine Arts Insurance Scope Inthe East, Final